Bulk alloy exporters cringe over tax hikes
Dec 27, 2007 | 02:02 PM
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Chinese bulk alloy exporters and copper smelters have balked at the Asian nation's latest round of export taxes, with respective predictions of slowing overseas trade and the possibility of oversupply in China when the taxes come into force Jan. 1.
Exports of ferrosilicon, silicomanganese and ferromanganese will be strongly affected by higher export taxes, particularly in the next two to three months, market participants said.
"With the increased taxes, offers from China will be uncompetitive. Overseas clients will not easily accept the higher prices, so most bulk alloys exports could slow down notably in the immediate future," a trader in Shanghai said.
China will raise export taxes on ferrosilicon to 25 percent from 15 percent, while the tax on silicomanganese and ferromanganese exports will double to 20 percent.
Bulk alloy producers also expressed concern about tax increases affecting the steel industry, which consumes bulk alloys and where the export tax on slab and billet will rise by 10 percentage points to 25 percent.....
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